What is ITR 2?
ITR 2 is a Income Tax Return form which is made for specific category of Taxpayers i.e. for Individuals and HUF not having any Income from Business and Profession. There are certain other conditions which needs to be followed for filing of ITR 2. We will be discussing those.
WHO CAN FILE ITR 2 - ELIGIBILITY
Form ITR-2 can be used by Individuals & HUF (Either Resident or Non-resident) for filing their return of Income having the following sources of Income :
-
More than one House Property Income
-
Having Foreign Assets/ Income
-
Having an Agriculture Income of more than Rs.5000
-
Having an Income of more than Rs. 50 Lakhs
WHO CAN'T FILE ITR-2 - INELIGIBILITY
Form ITR-2 can’t be filed by any Individual having Income from Business/ Profession either as a Proprietorship or as a Partner.
Also this form can’t be used by any Firm, Company, LLP or any other Entity.
Schedule Capital Gains in ITR-2 is a critical section for reporting gains or losses from the sale of capital assets like property, stocks, or mutual funds during the financial year. Agriculture income in ITR-2 also requires detailed disclosure if it exceeds the specified exemption limit. Taxpayers often seek guidance through videos or tutorials for ITR-2 filing, understanding its eligibility criteria and the reasons why ITR-2 is filed due to its specific requirements for reporting various income sources and assets. Filing ITR-2 online demands accuracy and attention to detail, ensuring complete disclosure of all relevant income sources and assets, leading to a smooth tax filing process and compliance with income tax regulations.
Documents Required for Filing ITR 2
The present system of ITR filing in India is through online mode on the official website of Govt. of India i.e. www.incometax.gov.in. All the ITRs including ITR-2 is completely paperless and through e-filing mode only. There is no requirement of attachment of any sort and hence there are no documents required to be attached with the Return of Income. Hence ITR-2 is also paperless and attachment less.
However for preparing the ITR-2 for filing, certain documents are required through which the Income can be assessed and details for ITR filing can be prepared. The list of documents/Informations required for preparing ITR-2 is as under :
-
Salary Slips/ Certificate/ Form-16
-
Proof of any Income from Other sources such as FDR Interest/ Post Office Interest.
-
Income from House Property Details
-
Form 16A if any
-
Deductions under Section 80D to 80U
-
Home Loan statement from Bank/any other institution
-
Aadhar No.
-
Pan No.
-
Details of Foreign Assets/ Income (if any)
-
Details of TDS/TCS deducted i.e. Form 26AS and Form 27D
How To Fill ITR 2 Online
Filing ITR-2 online involves a step-by-step process outlined by the Income Tax Department for taxpayers with specific sources of income and assets. ITR-2 is used by individuals and Hindu Undivided Families (HUFs) to report income from various sources, including capital gains, foreign assets, agricultural income exceeding a specified limit, and income from multiple properties. Understanding how to file ITR-2 online is crucial, and individuals can access the Income Tax Department's e-filing portal to complete the process. It's essential to provide accurate details regarding Schedule AL, which includes information about assets and liabilities held at the end of the fiscal year, ensuring comprehensive disclosure for tax assessment. Similarly, including Schedule AMTC aids in declaring deductions and adjustments under Chapter VI-A, contributing to accurate tax calculations and compliance when filing ITR-2.
INCOME TAX RETURN ITR-2
Here we will discuss the details required to be filled in ITR-2.
PART-A - GENERAL INFORMATION
Part A of the ITR-1 contains some general information such as Name, PAN, Date of birth, Mobile No. , Email ID, Aadhar No., type of filing, nature of Employment, whether the filing id original or revised, whether the filing is u/s 139 i.e. on time or belated etc. Also it asks whether you are opting for New Tax Regime u/s 115BAC. The details relating to Residential Status, Directorship in companies and Equity Shareholding in non-listed entities are also required to be disclosed in this part of the ITR.
SCHEDULE S- DETAILS OF INCOME FROM SALARY
In this Schedule, the name and address of the employer with TAN and nature of Employment is also required alongwith all the details of Salary and other allowances and perquisites recieved.
SCHEDULE HP - DETAILS OF INCOME FROM HOUSE PROPERTY
In this Schedule, the Address of the property alongwith names and Pan of the co-owners are required to be filled. Also the details of the tenant such as name, PAN are required.
Complete details of Rent received, annual rent alongwith all the deductions claimed from rental income has to be entered. You can add multiple house property details here.
SCHEDULE CG - CAPITAL GAINS
This is a long schedule which is divided into Short Term & Long Term Capital Gains. Full & complete details of each and every item has to be provided including all deductions claimed from such gains. Also there is seperate Schedule of Section 112A wherein scripwise details have to be entered for taking benefits of grandfathering clause as on 31st Jan.2018.
Also the set-off of short term and long term capital gains details are to be entered.
The bifurcation of Short Term & Long term capital gains quarterwise also needs to be entered so that the interest liability u/s 234C can be correctly analysed and calculated.
From A.Yr.2023-24, Schedule VDA - Income from transfer of Virtual Digital Assets has been newly added for reporting of transactions relating to virtual digital assets.
SCHEDULE OS - INCOME FROM OTHER SOURCES
In this Schedule, each and every detail relating to Income from Other Sources has to be entered. Also the deductions claimed from other source income are to be entered in details. Here also bifurcation of income from Dividends and winnings from lottery, puzzles, games etc. has to be provided quarterwise for calculation of interest u/s 234C.
SCHEDULE CYLA - DETAILS OF INCOME AFTER SETOFF OF CURRENT YEAR LOSSES
Under this Schedule, the current year losses under head House Property and other sources are allowed to be adjusted from Current year's income of Salaries, House Property, Capital Gain and other sources as per the provisions of Income Tax.
SCHEDULE BFLA - DETAILS OF INCOME AFTER SET OFF OF BROUGHT FORWARD LOSSES OF EARLIER YEARS
Under this Schedule, the brought forward losses of earlier years are allowed to be set off against current year's remaining income as per the provisions of the Act.
SCHEDULE CFL - CARRIED FORWARD LOSSES
This Schedule requires the details of last 8 years brought forward losses and adjustment of same against current year's income and the losses which remained and carried forward for future adjustments.
SCHEDULE VIA - DEDUCTIONS UNDER THE CHAPTER VIA
This Schedule requires figures of deductions claimed under Chapter VIA such as 80C, 80CCC, 80CCD, 80E, 80D etc.
SCHEDULE 80G - DETAILS OF DONATIONS UNDER SECTION 80G
This schedule required complete details in respect of donations given under Section 80G both entitled to 100% and 50% deductions including name, address, pan of the organisation alongwith mode of payment etc.
SCHEDULE 80GGA - DETAILS OF DONATIONS FOR SCIENTIFIC RESEARCH OR RURAL DEVELOPMENT
The relevant details to be entered if claiming exemption under this section.
SCHEDULE AMT - ALTERNATE MINIMUM TAX UNDER SECTION 115JC
This Schedule requires calculation of Tax payable u/s 115JC i.e. alternate minimum tax.
SCHEDULE AMTC - CALCULATION OF TAX CREDIT U/S 115JD
This Schedule requires the adjustment calculation of any tax credit availed and utilised u/s 115JD.
SCHEDULE SPI - INCOME OF SPECIFIED PERSON U/S 64 I.E. MINOR CHILD, SPOUSE ETC.
Under this Schedule, details of Income of Minor Child, Spouse etc. specified u/s 64 has to be entered.
SCHEDULE SI - SPECIAL INCOME
This schedule requires to details of all incomes which fall under Special Income which are taxed at different rates mostly u/s 115 of the Income Tax Act.
SCHEDULE EI- EXEMPT INCOME
Under this Schedule, complete details of all Income which are claimed to be Exempt has to be provided.
SCHEDULE PTI - PASS THROUGH INCOME FROM BUSINESS TRUST, INVESTMENT FUND U/S 115UA, 115UB
Complete details of Income from above trust or investment funds has to be provided in this Schedule.
SCHEDULE FSI - DETAILS OF INCOME FROM OUTSIDE INDIA AND TAX RELIEF
Here, the details of Income earned from outside India in case of Resident and the tax relief (if any) claimed has to be provided alongwith country code and TIN of the country.
SCHEDULE TR - SUMMARY OF TAX RELIEF CLAIMED FROM TAXES OUTSIDE INDIA
In case of Resident earning Income from outside India and paying tax in that country, the tax relied claimed in India in respect of that income under section 90, 90A or 91 has to be provided here.
SCHEDULE FA - DETAILS OF FOREIGN ASSETS AND INCOME FROM ANY SOURCE OUTSIDE INDIA
This Schedule requires details of complete assets, bank accounts, demat accounts, any movable or immovable property etc. of any resident in Foreign country and also income if any derived from such assets. The details are to be provided for Calendar year i.e. for A.Yr.23-24 it has to be provided as at 31st Dec. 22.
SCHEDULE 5A - INFORMATION REGARDING APPORTIONMENT OF INCOME AS PER PORTUGESE CODE
The relevant Information of Spouse as per Portugese code has to be provided here.
SCHEDULE AL - ASSETS AND LIABILITIES AS AT THE END OF THE YEAR [APPLICABLE IN CASE]
WHERE TOTAL INCOME EXCEEDS RS.50 LAKHS]
Complete details of all assets i.e. Immovable and Movable in case of persons earning income above 50 lakhs has to be filled in this Schedule.
SCHEDULE - TAX DEFERRED IN ESOP
The relevant information - relatable to income on perquisites referred in section 17(2)(vi) received from employer, being an eligible start-up referred to in section 80-IAC has to be provided here.
PART B - TI - COMPUTATION OF TOTAL INCOME
This schedule is the Summary of all the above Schedules wherein the total income under each head of income is to be summarised to arrive at Gross total income and then Total income.
PART B - TTI - TAX ON TOTAL INCOME
Under this Schedule, Tax liability is ascertained after providing for rebates and reliefs claimed and also the TDS, advance tax, Self asstt. tax are considered. The Interest u/s 234A, B & C are also calculated so as to arrive at net tax payable or refundable during the year.
This Schedule also requires details of all bank accounts held during the year alongwith the account to which refund has to be credited.
This Schedule also has sub-schedules for Advance Tax, Self Assessment Tax, TDS and TCS wherein complete details are to be provided as per tax challans, Form 26AS and Form 27D.
VERIFICATION
Form ITR-2 ends with the Verification section which can be done through Aadhar OTP, digital signature, or other modes of verification. However, if no modes of E-verification are available, then ITR-V acknowledgment generated after e-filing has to be physically signed and sent to CPC-Bangluru within 30 days of filing.
How to File ITR 2
Modes of Filing ITR-2
ITR - 2 form can be filed online at Income Tax Department online portal by directly filling in ITR-2 online form and uploading the same on the portal.
It can also be filed by uploading Json file on the portal.
After uploading the Json file the same needs to be verified. The verification mode can be either electronically or through sending the signed acknowledgement by post to CPC, Bangluru.
There are two methods of verifying the ITR-2 filed online.
First is through E-verify which can be by Aadhar OTP, through Bank Account & Demant Account E-OTP.
The other method is to physically sign the Acknowledgement generated after filing the ITR-2 online and sending the same to CPC-Bangluru by Post within 30 days of filings.
ITR-2 is to be filed online only except for super senior citizens. (above the age of 80 years)